EMERGING MARKETS-Currencies, stocks climb in run-up to US payrolls, trade deals in focus

By Ragini Mathur and Purvi Agarwal

July 3 (Reuters) - Most emerging market stocks and currencies edged higher on Thursday ahead of a crucial U.S. jobs report and after the U.S. signed a trade deal with Vietnam, raising hopes of more such deals ahead of a July tariff deadline.

U.S. payrolls data due later in the day could determine any change in the Federal Reserve's monetary policy stance, which in turn could influence U.S. assets.

President Donald Trump signed a deal with Vietnam on Wednesday, imposing a 20% tariff on exports to the U.S., lower than the threatened 46% and giving markets reason for some optimism that the impact of the tariffs may be less severe than expected on many countries.

"The data could be a risk for EMs because if we get a weak payrolls number, we could see the dollar take another tumble lower and that could lead to upward pressure for emerging market currencies," said Kathleen Brooks, research director at XTB.

"That isn't great news for emerging market stocks."

The dollar index =USD was slightly higher, though still trading around multi-year lows.

Negotiations over U.S. trade policy have made it difficult for investors to gauge the outlook for the global economy, and have pushed some of them to diversify into assets outside the U.S. this year.

Trump's sweeping tax-cut and spending package awaited a final vote. It is expected to add $3.4 trillion to the country's mounting debt, and increase fiscal concerns in the world's biggest economy.

MSCI's index tracking global emerging market currencies .MIEM00000CUS was 0.2% higher, at its highest since 2009.

In the Middle East, Turkey's lira TRYTOM=D3 slipped 0.1% against the dollar, while its stocks .XU100 were up 0.4%.

Turkey's annual inflation rate dipped a bit more than expected to 35.05% in June, data showed, likely reinforcing expectations of an interest rate cut in coming months.

South Africa's rand ZAR= was up 0.4% against the greenback, while its stocks .JTOPI gained 0.6%.

Emerging European currencies were down slightly against the euro, but the Czech crown EURCZK= fell 0.1%.

The Polish zloty EURPLN= was slightly higher, regaining after Wednesday's losses, when the central bank delivered a surprise 25 basis point cut.

Regional stocks soared, with Poland .WIG20 up 1.5%, and Hungary .BUX up 0.9%.

MSCI's global emerging market stocks gauge .MSCIEF gained 0.4%, boosted by European bourses and heavyweight Asian stocks. Seoul's stocks .KS11 closed up 1.3%, at their highest since September 2021.

Meanwhile, the World Bank trimmed Thailand's economic growth to 1.8% this year and 1.7% next year amid intensifying global and domestic headwinds.

HIGHLIGHTS:

** China's services activity growth hits 9-month low in June, shows Caixin PMI

** India services sector growth hits 10-month high as demand surges, PMI shows

** Philippine central bank says there's room for two more rate cuts

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